Cisco just disclosed something unusual in an SEC form filed on Wednesday.
Several relatives of one of Cisco’s senior executives, Rebecca Jacoby, have been paid handsomely by the company.
Jacoby is a long-time Cisco exec who was CIO, running all of Cisco’s internal IT operations under John Chambers.
Under new CEO Chuck Robbins, she got a big promotion. She’s now Senior Vice President, Operations, meaning the CIO reports to her, plus she’s now responsible for Cisco’s massive supply chain as well.
In the company’s annual proxy statement, first spotted by Cisco blogger Brad Reese, Cisco made several disclosures about Jacoby’s family.
Jacoby’s sister-in-law was a sales person (an “account executive”) for a company that sells management consulting services to Cisco. The sister-in-law apparently scored $US1 million worth of sales to Cisco in 2015, earning herself $US120,000. Cisco says that Jacoby had no direct involvement in these transactions.
Jacoby’s brother-in-law, on the other hand, was an actual employee of Cisco as a program manager in Cisco’s supply chain organisation for some of 2015. He was paid $US149,000 in total compensation for the part of 2015 that he worked as a Cisco employee, including salary, bonus, and incentive pay.
Now that Jacoby is the big boss of that unit, he no longer works for Cisco and he has landed a new job as a Cisco account manager for an unnamed company which provides contract labour to Cisco. Jacoby’s unit isn’t the one that contracts with that company, but Cisco did spend $US35 million with it in 2015.
The most interesting disclosure, however, involves Jacoby’s sister.
Jacoby’s sister is also a Cisco employee, a vice president of global business services — a good middle-management job. The sister earned total compensation of about $US1.24 million for fiscal 2015, between salary, bonus, incentive pay, stock awards, and other compensation.
Jacoby has now actually become her sister’s boss. (That’s got to be a fun topic of conversation at during the Jacoby family Thanksgiving dinner.)
In this case, the sister isn’t leaving her $US1 million+ job. Instead, Cisco has “appointed an independent person outside of Ms. Jacoby’s organisation to handle decisions relating to [the sister’s] job duties and assignments, compensation, and job performance evaluations,” it said.
In a company of 70,000 employees, it’s certainly not unusual for a few relatives to work together. But one thing’s for sure: Cisco has been very good for the Jacoby family.